Small business insurance startup Next becomes the second insurance tech startup since December to raise a seed round of $13M.

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Almost 40% of sole proprietorships in the US don’t carry small commercial insurance coverage, according to a recent McKinsey poll. Today, a spate of insurance tech startups are hoping to capture opportunity in the small business insurance space, offering services ranging from quote engines (Insureon) to digital wallets for managing policies and rates (Coverwallet) to free claims management and peer-comparison software (Embroker).

Now, the space is getting a new, well-funded entrant, Next Insurance, to the tune of $13 million in seed funding from Ribbit Capital, Zeev Ventures, and TLV Partners.

The startup is founded by Guy Goldstein, Nissim Tapiro, and Alon Huri, who previously co-founded bill pay app Check, acquired by Intuit in for $360M in June 2014.

Report: Understanding the Insurance Tech Landscape

This report prepared for LendIt 2017 covers startup formation and VC interest, insurance startups and investment trends, and how incumbents are responding to disruption.

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Next, which plans to become a Managing General Agent (MGA) and launch in the spring, is the second insurance tech startup since the start of December to raise a seed round of $13M. Lemonade, the still stealth peer-to-peer online P&C insurance carrier, raised $13M in a seed round led by Sequoia Capital Israel and Aleph.vc in December 2015, as shown below. Note: Data does not include angel and/or pre-seed tech financings.